Jakarta - The government has formulated at least three proposals to relax the People's Business Credit (KUR) program to ensure that the absorption target can be achieved this year. Previously, the government lowered the 2015 KUR absorption target from Rp30 trillion to Rp20 trillion.
Coordinating Minister for Economic Affairs, Darmin Nasution, in a press conference after a Limited Meeting on KUR chaired by President Joko Widodo (Jokowi) at the Presidential Office in Jakarta on Monday (10/5) evening, stated that several proposals for KUR relaxation were made to accelerate credit absorption.
"These proposals are essentially aimed at ensuring that business sectors do not need to be overly detailed, as long as the activities are productive," said Darmin.
The second proposal for relaxation is that the loan term for KUR is expected to be extended, taking into account the business conditions of prospective borrowers.
The third proposal concerns the realization of KUR for Indonesian Migrant Workers (TKI), which has been hampered by several regulations.
"The point is to facilitate our migrant workers because, before departure, they usually borrow money from foreign banks at high interest rates. Or upon returning, they can access KUR for additional business capital so they do not have to go abroad again," he said.
Darmin stated that President Jokowi had agreed to these proposals for further implementation.
At the same event, the Chairman of the Financial Services Authority (OJK), Muliaman Hadad, said that his agency, together with the Coordinating Ministry for Economic Affairs, had been tasked with expanding KUR in terms of sector coverage and implementing banks.
He added that regional development banks (BPD) were also being reconsidered as implementing banks, taking into account their performance in last year's KUR program.
Additionally, a linkage program could be implemented, for example, with other financial institutions such as Rural Banks (BPR).
"The key is that this expansion covers not only the area but also the implementing institutions so that absorption capacity increases while still adhering to prudential principles," he said.
Meanwhile, the President Director of PT Bank Rakyat Indonesia (BRI), Asmawi Syam, stated that KUR-implementing banks had also undertaken various internal efforts to boost KUR absorption.
"Internally, we are also making efforts, including using technology so that credit approvals can be done directly in the field, extending working hours to include Saturdays each week, and increasing human resources," he said.
Minister Darmin further added that KUR is one of the government's instruments to mitigate the impact of layoffs (PHK), which have reportedly increased in recent times.
Source: Antara